NJ regulators greenlight half Ocean Casino's sale to Ilitch Holdings

Atlantic City's Ocean Casino & Resort.

2021-10-15

United States

Reading time 1:39 min

The New Jersey Casino Control Commission has approved the acquisition by Ilitch, which owns Detroit's MotorCity Casino, of 50% of Ocean Casino Resort for $175 million. Of that investment, $70 million will be destined to finishing 464 rooms and 100 suites that have been under construction since 2012. Both Luxor Capital Group and Ilitch will share equally in major decisions concerning the property's operation.

The New Jersey Casino Control Commission approved on Thursday the sale of half of Atlantic City’s Ocean Casino Resort to the Ilitch organization, owner of professional sports teams and a casino in Detroit. The sale is expected to close within 30 days.

The regulating entity has greenlit the acquisition of 50% of the casino for $175 million by Ilitch, and share equally in major decisions concerning its operation with the current owners, Luxor Capital Group LP. Of that investment, $70 million will be destined to complete 464 hotel rooms -12 floors- and 100 new suites that have remained unfinished since the casino opened in 2012.

We are thrilled to announce a resort reinvestment of more than $75 million over the next year, featuring the highly anticipated addition of more than 460 hotel guest rooms and suites. Learn more: https://t.co/S3mZDvBhQP pic.twitter.com/eGH1qeFzwb
— Ocean Casino Resort (@TheOceanAC) October 14, 2021

Michael Conboy, a principal at Luxor, said that one of the ways to grow the market is to build more rooms. “The demand is 100% over 180 to 200 days a year”. He also added that the Ilitch organization “thare our growth vision”.

In an official statement issued by the company, Luxor spoke about the approval of the acquisition and said: “We are excited to welcome the Ilitch organization to Atlantic City. Their investment gives Ocean access to growth capital and provides a strategic partner to Luxor. Over the past year, Ocean’s team has progressed under new leadership that features top executives in the gaming and hospitality industries. Since that time, Ocean has strengthened its position in the market and continues to gain market share. We look forward to moving the business forward with Ilitch’s partnership.”

The approval of the sale followed the resignation of Ocean’s CEO Terry Glebocki on Monday. There have been no comments from the casino as to a potential relation between the two events. An interim CEO will be named within 10 days.